5G applications will not change significantly until the infrastructure is in place. Once the infrastructure is built, the end application will be clear, and it will create multiples of value compared to the infrastructure itself.
In the 4G era, many people are trying to find terminal apps, but no one can imagine arranging transportation through taxi-hailing apps, ordering food and clothing from a mobile phone, and downloading and playing movies from the palm of your hand. The 5G era faces the same problems as 4G. With the start of large-scale construction and the maturity of operation, the terminal application of 5G era will soon appear and change the world.
The next three years will be crucial in determining 5G pattern composition. Research shows that operators who are the first to roll out 4G technology and networks are able to leapfrog and get ahead of those who are late.
By analyzing 4G lifecycle data from more than 30 countries, we found that high-quality network leaders consistently deliver higher output and lower customer churn rates. With 5G, high-quality mobile connectivity will become even more important, as this technological transformation will provide breakthrough opportunities for service providers to move forward.
According to the latest forecast, there will be 190 million 5G users by the end of 2020 and the number will rise to 2.8 billion by the end of 2025. That would make 5G the fastest-expanding technology ever. It also predicts 160 million fixed wireless access (FWA) connections by the end of 2025, about 25% of all traffic.
Another study found that most consumers are willing to pay a 20 percent price premium for 5G, but it depends on two factors. First, it enhances the consumer experience, where the difference between 4G and 5G is obvious. Second, novel and unique 5G use cases bundled with 5G subscriptions.
By 2030, industry digitization will create a $700 billion market opportunity for service providers, representing about 35% of current industry revenue. In addition, Ericsson found that 70 per cent of companies were looking to work with non-telecoms service providers, while a third had already seen communications service providers as important partners in their digital work.
Service providers need to expand beyond traditional mobile web services to generate 5G revenue. The development of the cellular Internet of Things and private networks is critical to building momentum for 5G support.
In China, we are actively cooperating to explore 5G applications in different industries. Imagine the potential of the Chinese market, with 500 million 5G users. We are providing the right technology to build better 5G not just today but tomorrow."
